Reporting to Trade Repositories
Last Modified: 21/02/2014
From 12 February 2014 all counterparties are required to report details of any derivative contract (OTC or exchange traded) they have concluded, or which they have modified or terminated, to a registered or recognised trade repository (TR) under the European Markets Infrastructure Regulation (EMIR) reporting requirements.
What needs to be reported to TRs?
The details to be reported are set out in the final reporting EMIR technical standards, which are available from the EMIR Legislative Library.
- The first registration decision for TRs was effective from 14 November 2013. This meant that the requirement to report derivatives transactions to trade repositories under EMIR came into force on 12 February 2014, i.e. 90 calendar days after the official registration date.
- There is a 180 day transitional period from the start date indicated above for the reporting of exposures information (both information on collateral and mark-to -market or mark-to-model information).
- Those derivative contracts which were outstanding before 16 August 2012 and are still outstanding on the reporting start date shall be reported to a TR within 90 days of the reporting start date.
- Those derivative contracts which were outstanding on or after the 16 August 2012 and are still outstanding on the reporting start date shall be reported to a TR within T+1 days of the reporting start date.
- Those derivative contracts which were entered into before 16 August 2012 and are still outstanding on 16 August 2012 or were entered into on or after 16 August 2012 and that are not outstanding on or after the reporting start date shall be reported to a TR within 3 years of the reporting start date.
- Both counterparties MUST report each trade unless by prior arrangement, one party can report on behalf of both counterparties. Where one report is made on behalf of both counterparties, the report shall indicate this fact. The EMIR technical standards set out what information shall be submitted in relation to each of the counterparties, and what information shall be submitted only once.
- Either counterparty to the trade may delegate reporting to a third-party (such as a central counterparty or trading platform).
- Where one counterparty reports on behalf of another counterparty, or a third-party reports a contract on behalf of one or both counterparties, the details reported shall include the full set of details that would have been reported had the contracts been reported by each counterparty separately.
As the reporting obligation has already begun, firms should already have plans in place to meet the reporting obligation, whether by delegated reporting arrangements or through a direct connection with a TR registered or recognised by the European Securities and Markets Authority (ESMA). EMIR trade reports may only be submitted to trade repositories which are registered with ESMA. Six TRs are currently registered with, and recognised by, ESMA:
- CME Trade Repository Ltd. (CME TR), based in the United Kingdom
- DTCC Derivatives Repository Ltd. (DDRL), based in the United Kingdom
- ICE Trade Vault Europe Ltd. (ICE TVEL), based in the United Kingdom
- Krajowy Depozyt Papierów Wartosciowych S.A. (KDPW), based in Poland
- Regis-TR S.A., based in Luxembourg; and
- UnaVista Ltd, based in the United Kingdom
It will be possible to meet the reporting obligation by reporting to any ESMA-registered TR, The list above will be updated to reflect any future registration decisions made by ESMA.
All EU counterparties entering into derivative trades will need to have a Legal Entity Identifier (LEI) in order to meet the EMIR reporting obligations. The issuance of LEIs in line with the agreed principles for pre-Local Operating Unit solutions (LOUs) is currently underway. All LEIs issued by pre- LOUs which have been globally endorsed can used for EMIR trade reporting. A list of globally endorsed pre- LOUs can be found on the the LEI Regulatory Oversight Committee (ROC) website and includes the London Stock Exchange under the sponsorship of the Financial Conduct Authority. Please see the LEI ROC website
for more information.
ESMA has issued a number of Q&As which provide firms with further guidance on how to meet the reporting obligation. Further information can be found in the EMIR Library
For more information on our approach to supervising firms in respect of the EMIR requirements including what firms should do if there is a reason why fill compliance cannot be achieved in specific circumstances, please see our FCA supervisory priorities page